Welsh cousin of PFI could fund further projects

10/02/2020
Rhodri Clark

The Welsh Government is not ruling out using its novel Mutual Investment Model (MIM) to fund further transport projects, beyond the Hirwaun-Dowlais A465 dualling.

Procurement of contractors to finance, build and operate the Hirwaun-Dowlais dual carriageway (on the existing alignment) is due for completion this summer. The Welsh Government will make annual service payments over 30 years.

The MIM was developed in 2017 to enable Wales to dual the road and build schools and a cancer centre despite real-terms cuts in the Treasury’s block grant to Cardiff. Also, the Welsh Government earmarked much of its own borrowing for the £1.6bn M4 Relief Road at Newport, shelved last summer.

Former UK chancellor Philip Hammond banned new Private Finance Initiative schemes, but the Welsh Government believes the MIM, in which the public sector holds a minority stake, avoids the negatives of earlier Public Private Partnerships while incorporating benefits such as optimum risk allocation, whole-life costing and performance-based payments.

A spokesman said: 'As our capital budgets are under unprecedented pressures following a decade of UK Government-imposed austerity cuts, the MIM was developed to attract new investment to fund our ambitious programme.

'We will consider using the MIM to fund future infrastructure projects only once we have exhausted all conventional sources of capital funding, including using the borrowing powers of Welsh ministers and other bodies in Wales.'

The spokesman said the MIM contract would be different from the current A465 dualling between Brynmawr and Gilwern – hit by delays and cost increases – because the Welsh Government would not pay for the infrastructure until it is operational.

The risk of cost increases and programme delays would lie with the contractor, with penalties for non-performance.

The procurement involves 'competitive dialogue' between the government and bidders to identify technical solutions, as used for the Wales and Borders rail franchise which includes electrification.

Latest Issue

latest magazine issue

 

ALSO INSIDE:

  • Exclusive: Smart Motorways
  • Are you AI protected?
  • Traffex Parkex Evex Cold Comfort
View the latest issue


Highways jobs

Heavy Vehicle/Plant Apprenticeship

Age dependent (Under 18 yrs - £12,347, 18-20 yrs - £16,591, 21+yrs - £22,071)
The programme can start to build your career, or help you to re-train, becoming a valued, recognised and rewarded team member. Wakefield, West Yorkshire
Recruiter: Wakefield Council

Senior Engineer - Highways and Drainage

£40,221 - £44,428 + 12% Attraction + Retention Payment equating to actual pay £45,047 - 49,759
This is an exciting opportunity to join us as a Senior Engineer. Lincolnshire
Recruiter: Lincolnshire County Council

Service Manager - Highways (Asset and Traffic)

£48,474 to £51,515
A vacancy has become available for a Service Manager to join and manage our successful Highways Assets and Traffic team. Torbay, Devon
Recruiter: SWISCo

Traffic Management Technician - WMF1090e

Salary £26,421 - £27.334
This is a role for Traffic Management Technician to be based in the Eden area. Penrith, Cumbria
Recruiter: Westmorland and Furness Council

Assistant Arboricultural Consultant

£26100 - £30706 per annum + + 26 Days Leave & Defined Benefit Pension
Assistant Arboricultural ConsultantPermanent, Full TimeUp to £30,706 per annumLocation
Recruiter: Essex County Council

Heavy Goods Vehicle Mechanic

£27,507 - £29,418
You will need to be suitably experienced, hold a minimum of an NVQ Level 2 (or equivalent). Derby
Recruiter: Derbyshire County Council

Principal Engineer - Highways Development Management

£48,378 - £51,571
You will play a lead role on all major highway development proposals across West Northampton. One Angel Square, Northampton
Recruiter: West Northamptonshire Council

Transport Planning & Data Manager - CMB1061e

£62,273 - £65,017
Cumberland Council is a dynamic and forward-thinking authority dedicated to enhancing public services Cumbria
Recruiter: Cumberland Council

Transport Planner (Area Travel Plans) OCC616326

£39,186 - £42,403 per annum
It doesn’t matter where you’ve been, or where you’re going, it’s about the journey. Oxfordshire
Recruiter: Oxfordshire County Council

2x Technical Lead (Area Travel Plans) OCC616320

£43,421 - £46,464 per annum
It doesn’t matter where you’ve been, or where you’re going, it’s about the journey. Oxfordshire
Recruiter: Oxfordshire County Council

Assistant Transport Planner OCC616317

£29,269 - £32,076 per annum
It doesn’t matter where you’ve been, or where you’re going, it’s about the journey. Oxfordshire
Recruiter: Oxfordshire County Council

Principal Engineer - Highways Development Management

£48,378 - £51,571
We are looking for an experienced and talented professional to join West Northampton Council as our Highways Development Principal Engineer. One Angel Square, Northampton
Recruiter: West Northamptonshire Council

Structural Highway Maintenance – Highway Engineer

£36,648 - £39,186 per annum
An exciting opportunity has arisen for a driven and self-motivated engineer to join our Structural Highway Maintenance Team. Warwickshire / Countywide
Recruiter: Warwickshire County Council

Highway Asset and Development Manager

Grade N Scp 50 £59,031 to Scp 53 £62,076, plus car allowance
To be responsible for leading, developing and delivering an effective, efficient and safe Highway Asset Management Service Bolton, Greater Manchester
Recruiter: Bolton Council

Highways Engineer

£37,336 - £39,186
Wiltshire Highways – Enhancing Lives, Building Communities Wiltshire
Recruiter: Wiltshire Council

Engineer

£40,221 - £51,515
As part of a friendly and enthusiastic team, you will play an important role in designing innovative urban transport and public realm projects 100 Temple Street Redcliff Bristol BS1 6AN
Recruiter: Bristol City Council

UGO Bus Driver

Up to £23344 per annum
UGO Bus DriverPermanent, Full Time and Part TimeUp to £23,344 per annum (FTE)Location
Recruiter: Essex County Council

Parking Finance and Debt Officer RBKC616576

£37,575 - £41,286 per annum
In Kensington and Chelsea, we put local people and local businesses at the heart of decision-making Kensington and Chelsea, London (Greater)
Recruiter: The Royal Borough of Kensington & Chelsea Council

Street Services Officer RBKC616598

£31,716 - £35,862 per annum
Keeping our streets safe and our road-users well-informed Kensington and Chelsea, London (Greater)
Recruiter: The Royal Borough of Kensington & Chelsea Council

Highways Network Engineer WMF1059e

£42,403 - £43,421
We are looking for strong communicators, as you will provide technical advice and guidance to colleagues Kendal, Cumbria
Recruiter: Westmorland and Furness Council

Highways Presents

 


Latest Video